Tanner
& Guin.
Achieving sales and use tax relief
for churches...
Tanner
& Guin is the leader in this area, having
originated the method and obtained the court
decision that made this possible. We’ve
handled more of these projects than any other
law firm, helping over 30 Alabama churches and
charities secure these savings.
Churches
may receive tax exemptions on project materials,
equipment, and furnishings.
The taxable portion of new construction
is approximately 60% of the cost and also
applies to all other purchases by the church,
such as Bibles and Sunday School materials.
For
example:
Cost of project:
$2,000,000
Portion of cost for materials:
60%
Materials cost:
$1,200,000
Sales tax on materials (9%):
$108,000
Savings:
$108,000
Savings
achieved for church development projects across
the state:
- Achieved
a savings for a major church development of
over $1,000,000.
- Some
ministries save over $20,000 per year by
avoiding sales taxes on food, medical
supplies, and other expenses.
- Helped
churches save tens of thousands of dollars a
year in interest expenses on their
construction loans, including loans already
in place.
Calculate your savings:
Cost
of project
/ new addition: $_________________
x est.
% of project for materials: x
.60
= est.
cost of taxable materials: $________________
x state
and local sales tax rate:
x
_______%
(ex.09
for 9%)
=
savings to your church / charity:
_______________
We
do not recommend anything illegal or unethical.
After making full disclosure, we obtain
for you an advance determination by the
Department of Revenue that you are entitled to
this savings.
Tanner
& Guin represents churches across the State
of Alabama, providing a full range of legal
services to our church clients, including:
- Labor
and employment advice: EEOC, COBRA,
Americans with Disabilities Act, workers
compensation, unemployment compensation,
etc.
- Loan
negotiations and closing counsel
- Bond
counsel
- Employee
handbooks and child abuse prevention
policies
- Income
tax and FICA counsel
- Tax
exempt organization law advice
For
more information, return the postage-paid card
or contact Jay Guin at (205) 633-0205 or Blake
Madison at (205) 633-0246 so that a Tanner &
Guin tax attorney may discuss how we can work
together to save taxes, reduce your interest
expense, and help resolve any other legal
concerns.
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